Even as the new sales bookings improved during the April-June 2017 as compared to Q4FY17, the realty sector continues to face demand headwinds on account of subdued macro-economic environment and consumer sentiment in the near term, says ratings agency ICRA.

According to ICRA, the value of sales has steadily improved from Rs 2,709 core in Q3FY17 to Rs 3,310 crore in Q4FY17 and further to Rs 3,703 crore in Q1FY18, which is indicative of the waning impact of demonetisation.

"While the impact of demonetisation on the industry has been gradually waning, the implementation of Real Estate (Regulation and Development) Act, or RERA, and Goods and Services Tax, or GST, over the first half of FY18 has created short-term disruption in sales volumes of many developers," ICRA Vice-President and Sector Head Shubham Jain said in a statement.

He said the industry faces demand headwinds on account of subdued macro-economic environment and consumer sentiment.

"What provides a ray of hope is the growth in volumes reported by a few developers which could be indicative of the scope for organised players."